Switch between fixed and variable interest rates

When you apply for your home loan, one of your key decisions is to choose a fixed interest rate, a variable interest rate, or a combination of both. Throughout the life of your home loan, you’ll have the opportunity to switch between a fixed or variable interest rate, or to switch to a split rate home loan.

The benefits of fixed interest rate, variable interest rate and splitting your home loans

Each type of loan offers benefits, so you’ll need to choose what suits your individual situation and your outlook on interest rate movements. We’ll help you with a home loan switch when you decide you’re ready to make a change.

Your home loan	The benefits
Fixed Interest Rate³	Choose a fixed rate term from 1 to 5 years Know exactly where you stand with your budget and what you’ll need to pay If you believe interest rates are on the rise, you may feel most comfortable with a Fixed Interest Rate home loan For new and maturing fixed rate loans, you can lock in an advertised fixed rate with Rate Lock¹ Redraw up to $10,000 p.a. for loans fixed on or after 30 Nov 2009.² Flexible options like partial interest offset to help you manage your loan and pay it off sooner
Variable Interest Rate	Get a competitive variable interest rate without being locked in for a set term Interest rates will move up and down with changes to financial market rates Standard Variable Home Loan – flexible options like our full interest offset and redraw to help you manage your loan and pay it off sooner.
Splitting your loan	Get the flexibility of a variable rate plus the security of a fixed interest rate with a split home loan Your variable rate portion will give you all the added features that can save you money and increase your flexibility, like making extra repayments or having a full interest offset facility Your fixed rate portion will protect you against a potential rise in interest rates and increase your flexibility, like having a partial interest offset facility

Thinking about switching? Want some advice?

If you think it might be time to switch between fixed and variable rates, speak to one of our home loan experts on 13 22 66 or drop by any Bank of Melbourne branch.

The Detail

The information on our website is prepared without knowing your personal financial circumstances. Before you act on this general information, please consider if it’s right for you. If you need help, call 13 22 66.

¹Rate lock requests are subject to our approval. Fees apply.
² Redraw requests are subject to our approval. Fees apply. For fixed interest rate loan redraws only available for loans fixed after 30 November 2009 (up to a maximum of $10,000 or break costs may be payable).
³Where a fixed rate term applies, after the fixed rate period expires, the interest rate will revert to the applicable standard variable rate for the loan category and repayment type.